Simons v. United States

CLARIE, District Judge.

The plaintiffs prepared and filed their income tax returns for the calendar year 1958 and availed themselves of the deductions allowed to the stockholders of a “small business corporation”, in accordance with the provisions of Sub-chapter “S”, §§ 1371-1377 of the Internal Revenue Code of 1954, as amended by the Technical Amendments Act of 1958, 26 U.S.C.A. §§ 1371-1377. It is their claim that The Joseph Simons Company made a proper and timely election under § 1372 to be taxed as a “small business corporation.”

The Government’s position is that the election was delinquent…